Sensex, Nifty Extend Rally For Third Consecutive Day Despite Continued FPI Selling

Equity benchmark indices extended rally for the third consecutive session on Wednesday, March 19. The BSE Sensex opened a gap-up at 75,473.17, higher by 171.91 points, or 0.23 per cent. Likewise, the NSE Nifty 50 opened with a gap-up of 40.65 points, or 0.18 per cent. Both the indices traded in green around the midday session.

HDFC Bank, Reliance Industries, Zomato, Larsen & Toubro, and State Bank of India were the key contributors to the Sensex's performance. However, FMCG major ITC and tech stocks such as Infosys, Tata Consultancy Services, HCL Technologies, and Tech Mahindra acted as a major drag on the index, limiting its potential for further gains.

Sector-wise, barring IT and FMCG, all other sectoral indices traded in the green, where banks, financial services and metal led the gains.

Over the last three sessions, Sensex has gained over 1700 points or 2.3 per cent, and Nifty 50 advanced more than 500 points or 2.4 per cent. On a year-to-date (YTD) basis, Sensex is still trading lower by 3.8 per cent, while Nifty 50 is down by 3.5 per cent.

FPIs Continue To Sell

This three-day rally has come despite continued selling by foreign portfolio investors (FIIs). According to National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) data, FPIs sold a net of Rs 4,445.74 crore worth of equities through stock exchanges. However, in the primary market, they have been net buyers with a purchase of Rs 738.44 crore.

So far in March, up until the 18th, FPIs have sold equities worth Rs 34,580 crore through the stock exchanges, according to data from NDSL and CDSL. Year-to-date, their total equity sales stand at Rs 1,47,181 crore, of which Rs 78,027 selling came in January and Rs 34,574 crore in February.

DIIs Absorb FPI’s Selling Pressure

Domestic institutional investors (DIIs), on the other hand, have been supporting the market by consistently buying equities to offset FPI selling.

In the calendar year (CY) 2025 so far, DIIs have bought equities worth Rs 1,86,430.70 crore. Month-wise, they bought equities worth Rs 86,591.80 crore in January, Rs 64,853.19 crore in February, and Rs 34,985.71 in March so far.

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